Indian markets opened flat on Thursday, May 8, and traded within a narrow range during the first half of the session. However, losses intensified toward the close, driven by panic selling amid rising geopolitical tensions and heightened uncertainty due to the weekly expiry. The Nifty ended 140.60 points, or 0.58%, lower at 24,273.80. Broader indices suffered steeper declines, with the Nifty Smallcap 100 and Nifty Midcap 100 falling as much as 1.5%. Sectorally, the performance was mixed. Auto, FMCG, banking, realty and pharma stocks were among the worst performers, each shedding nearly 2%, while IT and media stocks managed to post modest gains despite the overall market turbulence. Market volatility surged, with the India VIX—India's volatility index—jumping 14% to 21.80, reflecting the growing investor anxiety and expiry-driven swings.

Nifty Outlook

Index formed a bear candle with a lower high and lower low signaling profit booking at higher levels amid escalation of the geopolitical tension.  

A follow through weakness below Thursday low (24150) can lead to an extension of decline towards 24,000 levels. Broadly, Nifty is expected to continue its consolidation within the 24,000–24,600 zone — a range it has held over the past eight sessions. Strong support lies between 24,000 and 23,800.

Only a sustained close above the resistance zone of 24,550–24,600 could pave the way for an upward move towards the December 2024 high of 24,850 in the near term.

Volatility is likely to stay elevated due to ongoing geopolitical tensions, tariff-related developments, and Q4 earnings progress.

Bank nifty Outlook

Bank Nifty started the session on a positive note, however profit booking around 55,000 levels amid escalation of the geopolitical tension saw the index gave up its gains and closed the session down by 0.45%. Index formed a bear candle highlighting profit booking at higher levels.

Key observation is that the last 10 sessions consolidation is inside a channel. We expect it to extend the consolidation in the range of 53,000-56,000, thus working off the overbought conditions created by the recent sharp rally. The index has already taken 10 sessions to retrace just 38.2% of the preceding 6 sessions rally signaling a shallow retracement of the previous up move.

On the downside, key support is seen between 53,000-53,500 levels being the previous major breakout area and previous gap up area.